I need your help to answer these question parts please Type

o\'Connor Company ordered a machine on January 1 at a purchase price of $120,000. On the date of delivery, January 2, the company paid $30,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,200 for freight on the machine. On January 5, O\'Connor paid cash for installation costs relating to the machine amounting to $7,200 On December 31 (the end of the accounting period), O\'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $12,800

Solution

1.

2. Acquisition cost of the machine = Purchase price of machine + Freight paid on machine + Installation cost

= 120,000 + 1,200 + 7,200

= $128,400

3. Annual depreciation = (Aquisition cost - Scrap value)/ Useful Life of asset

= (128,400 - 12,800)/10

= $11,560

4. Book value of machine at the end of year 2 = 128,400 - 11,560 - 11,560

= $105,280

Date	Assets = Liabilities + Stockholders\' equity
Jan 1
Jan 2	Cash	-30,000	Long term note payable	90,000
	Machine	120,000
Jan 3	Machine	1,200
	Cash	-1,200
Jan 5	Machine	7,200
	Cash	-7,200